21 potential purchasers interested in the NewPage Port Hawkesbury mill
In the report, the company said they contacted 110 interested parties to determine if they had interest in executing a confidentiality agreement to obtain more interest regarding the mill and its assets. 27 potential purchasers signed a confidentiality agreement. 21 of them submitted non-binding letters of intent.
These 21 interested parties have not yet been publicly identified, but Ernst and Young did say that within the group of 21, there were parties interested in operating the mill as a going-concern, and others who intend to liquidate the mill’s assets.
All 21 submissions have now be evaluated as to their ability to complete a purchase. They were to be notified whether or not they have met the qualifications to continue in the sale process by yesterday.
The qualified bidders will have an opportunity to receive more information, hear presentations from the mill’s management, and will be able to tour the mill.
The qualified bidders have until 5pm on October 14 to submit a formal offer, including a deposit. Their offer is to include a projected timeline for closing.
Also in the report, Ernst & Young mentioned that 37 employees of NewPage Port Hawkesbury have elected to retired between September 1 and December 31, 2011.
Also, as of yesterday, there is approximately 37,992 tonnes of inventory (excluding fuelwood and hogfuel) located in several locations in Nova Scotia and New Brunswick. Some of this inventory, specifically 3,465 tonnes of studwood, are traditionally sold by the company to third party sawmills. Most of the inventory is sitting in the mill yard awaiting transport. Due to moisture content, the mill management estimates that the pulpwood inventory located at the mill (20,484 tonnes) will be at the end of its useful life by the end of October.
Source: Ernst & Young Inc.
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